Northeast Business Trends

Jan/Feb Issue

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By Lydian Kennin
Staff Writer

As the Softwood market approaches the winter, sources anticipate a busier season than normal because of short supply.

A source in New Hampshire described the market as “ramping up a little bit” from the fall slowdown. “I think it flat-lined a little bit through the fall, but it seems to be busy now, even a little busier for this time of year,” he said. “This time of year, a lot of people are typically winding down inventories and waiting until after the first of the year to put orders on. There are some people doing that, but the market seems to be slightly increasing in pace and demand. I’d say it’s encouraging going into next year for sure.”

This source added that the labor shortage and unusually wet season have made it difficult for loggers to remove logs from the woods. “There’s not really any mill out there that has a stellar log deck right now. Some mills are out completely. We got a bunch of rain yesterday and with more warm weather on the horizon, it’s just a little iffy out there. I think once the ground freezes, we can be off and running.” 

The source described the market as slightly busier than it was in the early fall. “It’s ramped up here in November going into December,” he explained. He further described this fall season as slower than the same months last year. This source handles Eastern White Pine in 4/4 boards and sells to customers across the country. “It’s getting busier,” he said. “In the Southeast, up in Canada, and in the Northeast through August and September, my customers are saying, ‘I’m busy as heck’,” he added.

When asked about transportation, the source reportedly heard nightmare stories from friendly competitors about trucks being hard to come by, but he has not had the same experience. “We’ve fared pretty well,” he said. “We’re right off the interstate, so it doesn’t hit us as hard as some other people.” The source anticipates the market to continue at a quicker pace going into the new year. “I think for this time of the year— to be doing this already? It is pretty telling that it’s going to be a busy spring,” he added.

In Maine, a different source described the market as “very strong” and even “crippling,” but, said that he would rather have to say no to customers when low in stock than “beg for a yes.”

“We are currently not able to meet all of the demand with our customers as a wholesale manufacturer who has their own in-state distribution network,” he explained. “I only deal with Eastern White Pine, but as far as that goes, I am seeing an elevated demand and an increased scarceness of the D and Better Select Grade products out there available.”

He described the market as similar to how it stood a few months ago but with a shift in industrial demand. “As far as the homeowner DIY stuff, projects, etc., a lot of that has slowed down and the focus has shifted to the retail market with more contractor housing development, remodels and things like that. The larger construction projects are moving forward at a continued accelerated pace.”

The source reported that his customers are complaining about high prices. “There is a nationwide inflation that is impacting us all,” he said. This inflation has also impacted this source’s transportation, which he described as “rough.” 

“Trucks are still continuing to be a challenge and we’ve seen an increase in rates across the board,” he added.

When asked what he predicts for the coming months, the source responded, “As far as what we’re seeing in our area, there’s been a huge push on getting a lot of foundations laid. We don’t necessarily see a real slowdown happening this winter, but everything always slows down a little bit during the holidays. That’s normal. We see a very strong residential building market continuing to go forward.”

In Massachusetts, a different source reported that her business is “still incredibly busy.”

“We have seen virtually no slowdown from the summer and fall,” she said. “You know, traditionally this time of the year is slower for us, but we’re not seeing that this year. Things are still very, very hot.”

When asked how she would describe supply compared with demand, she replied, “There are some supply issues starting to rise again. We are able to get most of what we are looking for, even if it requires a little bit of lead time. Over the past two to three weeks here, we have noticed some difficulty in securing loads that we’re looking for. From what I’ve been told by our mill partners, the issue is log supply.

“Traditionally, September and October are two of our busiest months of the year, and November and December are slower, but instead we had a November just as strong as September so I would say we are streaming right ahead,” she said.

Her business handles Eastern White Pine and Western Red Cedar. Her customers are telling her that “things are still very busy for them.”

She explained that her customers have had issues with transportation costs. “Freight is a concern. They’ve been struggling a little bit with that. We deal with a variety of customers across the country, and they’re all much busier than they expected to be at this time of the year. The only unusual thing I am hearing from them is that demand is still very high.”

When asked if she predicted any changes in the coming months, the source responded, “I realistically think that as long as the weather remains mild, the demand is going to remain incredibly strong. It won’t be until winter really sets in that we might see any sort of slowdown, and that will be weather dependent. I think once spring hits, we are going to be even busier than we were last year.” 

By Miller Wood Trade Publications

The premier online information source for the forest products industry since 1927.

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